For Tesla Inc. investors who persevered with the electric vehicle manufacturer during a difficult period, the clouds are now parting. The stock is expected to increase by more than twofold this year as a result of an influx of positive company news and the return of optimistic market belief.
Tesla roughly reaches USD 782.83 billion – Looks positive to reach a Trillion dollar market cap
In an 11-day stretch, the Elon Musk-led EV company’s market value increased by more than $194 billion, as the shares tied for their longest winning streak ever. The shares have only accomplished this accomplishment twice in Tesla’s history.
Although Tesla has been a “wild stock” over the years, Bespoke Investment Group claims that it has only ever had two prior double-digit winning streaks. The shortest was less than a year later, in January 2021, while the longest was 10 trading days concluding in April 2020. Friday’s closing price for Tesla shares was up 4.1% to $244.40, a 98% increase for the year. The 14% increase this week was the best since January.
Following a similar step from Ford Motor Company, which all but guarantees it will become an industry standard in the US, General Motors Co. announced on Thursday that it will adapt its EVs to Tesla’s Superchargers, which sparked a sharp surge on Friday.
“More people buying EVs (regardless of whether they be GM or Ford for that matter) increases the probability that they buy Teslas,” RBC Capital Markets analyst Tom Narayan stated in a note on Thursday. “A rising tide lifts all boats,” the saying goes. If consumers see their neighbor owning an EV, they are more likely to do the same, increasing their likelihood of purchasing a Tesla.
However, this is only the most recent in a succession of EV and related news stories that have helped fuel Tesla’s explosive growth since late May. A new set of requirements established by the US Treasury Department made all Tesla Model 3 sedans eligible for the full US tax credit earlier this week. Additionally, Musk’s social media platform Twitter appointed a new CEO, quelling investor concerns that Musk was overextended between his numerous high-profile businesses.
The market craze for everything AI-related, which added to the already positive attitude toward technology and mega-cap firms and propelled the S&P 500 Index into the bull market territory, is another factor. Although it’s unclear whether its high valuation will allow for any additional AI-related growth or whether the self-driving technology it is developing can even be compared to the generative-AI trend, the stock has unquestionably caught the bug.
